Ministry of Railways has advised to recover excess payment made towards Transport Allowance @ Rs.7000/-+DA thereon to officers of organized services drawing Grade Pay of Rs. 10000/- on Non-functional basis since they are not eligible.

Ministry of Railways has advised to recover excess payment made towards Transport Allowance @ Rs.7000/-+DA thereon to officers of organized services drawing Grade Pay of Rs. 10000/- on Non-functional basis since they are not eligible.

Attention is invited to Board’s letter of even number dt. 12.09.2014 (RBE No.100/2014) whereby it has been clarified that the officers of organized services drawing Grade Pay of Rs.10000/- under NFU Scheme are not eligible for grant of Transport Allowance 7000/-p.m+D.A thereon. References have been received from some of the Zonal Railways seeking guidelines as regards effecting recovery or otherwise of overpayments made to such officers due to erroneously allowing Transport Allowance @ Rs.7,000/- p.m. + D.A thereon.

2. In context of the above, it is stated that as per general principles of financial proprietary, any amount paid to the employee in excess of what is due to him has to be recovered. Further, the Hon’ble Supreme Court in matter of Chandi Prasad Uniyal and Ors Vs State of Uttrakhand & Ors (Civil Appeal No. 5899/2012) vide their order dt;17.08.2012 have observed that “any amount paid/received without authority of law can always be recovered barring few exceptions of extreme hardships but not as a matter of right, in such situations law implies an obligation on the payee to repay the money, otherwise it would amount to unjust enrichment”.

3. As per mandate of the rulings of the Hon’ble Supreme Court, necessary action to recover the payment made against Transport Allowance may please be taken immediately.